Achieves
Higher Than Planned Net Income On Lower Than Projected Record
Revenues;

Revenue
Growth Over Nine Months Was 27.25%;

Sees
Strong Fourth Quarter But Revises Full Year Outlook

NEW
YORK,
NY—Nov. 15, 2007 -- Orsus Xelent Technologies, Inc. (AMEX:ORS), a designer and
manufacturer of award-winning mobile phones for the Asian market, today reported
net income for its third quarter ending September 30, 2007 of $2,570,000 or
$0.09 per share, stemming from continuing sales of higher margin mobile phones
and a focus on cost containment. The company also reported that the gain in
pre-tax net income in the period was 26% reflecting the fact that in the third
quarter last year the company was not required to pay income taxes.

For
the
first nine months of 2007, the company said net income grew 13.30% to
$5,266,000, compared to $4,648,000 in the same period last year. On a pre-tax
basis, the company reported growth in net income through the first nine months
of 2007 of 31.61%.

Revenues
in the third quarter reached a record $22,046,000, which was approximately
34%
higher than the preceding second quarter of 2007. Through the first nine months
of the year, the company reported a gain in revenues of 27.25%, which grew
to
$58,411,000 from $45,901,000 in the first nine months of 2006.

The
company noted that a key factor underlying the continuing growth in sales and
profits was the success of two key strategies implemented at the start of the
year. First, was its decision to set up cooperative relationships with key
suppliers and telecom operators. It also decided to shift from mass distribution
of lower priced products to mid-level and high end products, with significantly
higher margins, including the special application phones for which it has begun
to develop sales this year. At the same time, the company has not neglected
its
traditional markets, as reflected in the 55% contribution to revenues from
traditional headset products in the third quarter.

The
company’s actual revenues in the third quarter were $2 million below the prior
guidance for the period. With respect to the October 4, 2007 press release
which
contained the revenue projection for the 2007 third quarter, the Company
explained that its intent in the release was to disclose an anticipated 20%
increase in third quarter revenues compared with the second quarter of 2007,
on
which basis results in the third quarter actually have exceeded the projection.
However, due to a miscommunication between the Company and its investor
relations firm, the comparison made in the release was with the third quarter
of
2006. Further, the company did not become cognizant of this discrepancy until
the process for reporting actual nine month and third quarter results was
underway.

Commenting
on these results, Mr. Xavier Wang, president and CEO of ORSUS XELENT, stated,
“We are pleased with seeing the continuing positive results of the
implementation of our strategy shift this year, which led to net profits in
the
third quarter nearly equaling the combined results of the first two quarters
of
the year. We are addressing the error regarding the prior guidance with a
tightening of our internal procedures, in particular, for developing and issuing
projections, a process which I intend to personally supervise.”

Full
Year Outlook

He
added,
“With this in mind, we have determined that it would be prudent for us to be
as
conservative as possible with respect to projecting results for the remainder
of
the year. Consequently, while we anticipate closing the year with a strong
fourth quarter, marked by further contributions to sales and profits from our
GSM, CDMA and specialized applications handsets, we are revising our full year
guidance from estimated revenue growth of over 30%, to revenue growth in a
range
of 20% to 30% ahead of results in 2006.”

“Additionally”,
Mr. Wang said, “with an eye toward further improving our profitability, we are
moving toward shifting from OEM to independent production of our own-brand
mobile phones, and by year end are intending to enter into an agreement
regarding our previously announced planned acquisition of “Lemon Times” with
consummation of the acquisition subject to our proper audit and due diligence
of
the target company.”

Other
Key Events In The Quarter

·

In
August, Orsus announced it signed a letter of intent to acquire for
cash
and stock a majority of a Hebei Province headset designer and
manufacturer, the “Lemon Times,” with a 5,000 square meter electronics
factory on 64,000 square meters of land. With two complete SMT product
lines and four EOL product lines and ISO 9000 Quality Management
System
Certification, ORS believes the operation will allow it to achieve
internal production capacity of more than one million self branded
and OEM
units annually. It expects to realize the full benefits and cost
savings
of this production in 2008 and to be in a much stronger position
to
successfully participate in China’s 3G
market.

·

In
September, Orsus said it expected to begin delivery of an initial
order
for 488 units of its Proxlink X180 specialized application law enforcement
mobile terminals to Hebei-BAIC employees in two cities. This represented
the initial implementation of the Letter of Intent signed earlier
in the
year with the SAIC Hebei Province. It is expected that over the next
several months, more than 10,000 law enforcement officials will become
users of this advanced product which utilizes the China Unicom CDMA
1X
wireless data network.

About
Orsus Xelent Technologies, Inc.

Incorporated
in the State of Delaware and headquartered in Beijing, China, Orsus Xelent
Technologies, Inc. is an emerging designer and manufacturer of award-winning
mobile phones for the Asian market, primarily the People's Republic of China
(PRC). The Company's business encompasses the design of mobile phones, related
digital circuits, and software development, and it is a recognized pioneer
in
mobile phone integration technology. It introduced the region's first
wristwatch-style cellular phone, and it continues to break new ground with
state-of-the-art phones that include advanced features such as finger print
recognition and touch-screen displays. Increasingly, the Company is focused
on
developing and marketing, under its Proxlink trademark, special application
mobile phones for specialized users in a wide variety of professions in business
and government. Since the Company's launch in 2004, it has established "Orsus"
as a popular brand and achieved a significant share of the world's largest
mobile phone market. It maintains more than 179 service call centers across
the
PRC, with additional offices in New York, Shanghai, Hong Kong, Shenzhen, and
Tianjin. For more information, please visit the Company's web site:
www.orsus-xelent.com.

Information
Regarding Forward-Looking Statements

Except
for historical information contained herein, the statements in this Press
Release are forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties,
which may cause our actual results in future periods to differ materially from
forecasted results. These risks and uncertainties include, among other things,
product demand, market competition, and risks inherent in our operations. These
and other risks are described in our filings with the Securities and Exchange
Commission.

-See
Attached Tables-

Contact:

Orsus
Xelent Technologies, Inc.

Xavier
Xin Wang

President
& CEO

PRC:

Tel
010-85653777

Fax
010-85653666

US:

Investors
and Press

Tel:
212 425 5700

Fax:
212 425 6951

Condensed
Consolidated Statements of Operations (Unaudited)

For
the three and nine months ended September 30, 2006 and
2007

(Unaudited)

Three
months ended

September
30,

(Unaudited)

Nine
months ended

September
30,

2007

2006

2007

2006

US$000

$

US$000

$

US$000

$

US$000

Revenues

22,046

20,525

58,411

45,901

Cost
of revenue

18,064

16,716

47,586

37,879

Gross
income

3,982

3,809

10,825

8,022

Operating
expenses:

Sales
and marketing

142

140

389

926

General
and administrative

262

1,194

2,250

1,883

Research
and development

23

40

319

187

Depreciation

26

24

113

149

Allowance
for obsolete inventories

108

-

700

-

Total
operating expenses

561

1,398

3,771

3,145

Operating
income

3,421

2,411

7,054

4,877

Finance
costs

(443

)

(41

)

(747

)

(70

)

Other
income

14

(4

)

21

1

Income
before income taxes

2,992

2,366

6,328

4,808

Income
taxes

(422

)

-

(1,062

)

(160

)

Net
income

2,570

2,366

5,266

4,648

Other
comprehensive income

-

-

-

-

2,570

2,366

5,266

4,648

Earnings
per share:

Basic
and diluted

0.09

0.08

0.18

0.16

Weighted
average shares outstanding

29,756,000

29,756,000

29,756,000

29,756,000

Condensed
Consolidated Balance Sheets (Unaudited)

As
of December 31, 2006 and September 30, 2007

As
of

September
30,

2007

As
of

December
31,

2006

ASSETS

US$000

$

US$000

Current
assets

Cash
and cash equivalents

2,519

2,421

Accounts
receivable, net of allowance for doubtful

accounts
of US$Nil (2006:
US$230,000)

46,741

31,425

Inventories,
net

4

1,230

Trade
deposit paid, net

9,521

8,989

Advance
to third party

-

288

Other
current assets

106

86

Pledged
deposit

1,128

1,128

Total
current assets

60,019

45,567

Property,
plant and equipment, net

393

320

Total
assets

60,412

45,887

LIABILITIES
AND STOCKHOLDERS’ EQUITY

Current
liabilities

Short-term
bank loans

8,571

6,268

Accounts
payable

13,760

10,964

Accrued
expenses and other accrued liabilities

6,610

4,444

Trade
deposits
received

1,000

251

Due
to directors

325

330

Due
to a stockholder

132

-

Provision
for warranty

115

53

Tax
payables

2,350

1,294

Total
current liabilities

32,863

23,604

Stockholders’
equity

Preferred
stock, US$0.001 par value:

Authorized:
100,000,000 shares, no shares issued

-

-

Common
stock and paid-in capital, US$0.001 par value:

Authorized:
100,000,000 shares

Issued
and outstanding: 29,756,000 shares as of September 30, 2007 and as
of
December 31, 2006